US stock markets today (May 7, 2026): Wall Street holds near record highs as oil prices tumble on Iran deal hopes
US stock markets hovered near record highs on Thursday as oil prices extended losses amid rising optimism over a possible agreement between the United States and Iran that could reopen the Strait of Hormuz and restore crude shipments from the Persian Gulf, AP reported.The S&P 500 added 0.1 per cent, extending gains after hitting an all-time high in the previous session. The Dow Jones Industrial Average rose 59 points, or 0.1 per cent, while the Nasdaq Composite gained 0.2 per cent in early trade.Investor sentiment improved after Iran said it was reviewing the latest US proposals aimed at ending the conflict.The price of Brent crude oil, the global benchmark, fell another 3.8 per cent to $97.38 per barrel, down sharply from levels above $115 earlier this week.Markets reacted positively after a spokesperson for Pakistan’s Foreign Ministry said, “We expect an agreement sooner rather than later.” Pakistan has been mediating between Washington and Tehran.The possible reopening of the Strait of Hormuz has become a key focus for global markets, as the closure of the route disrupted oil tanker movement and pushed up fuel and commodity prices worldwide.Despite renewed optimism, tensions in West Asia remained elevated after a US fighter jet reportedly disabled the rudder of an Iranian oil tanker in the Gulf of Oman on Wednesday while enforcing the American blockade of Iranian ports.Wall Street also drew support from strong quarterly earnings by major US companies.DoorDash gained 3.09 per cent after posting better-than-expected quarterly results, while Datadog surged 33.6 per cent after beating profit estimates. Electricity company Vistra rose 4.6 per cent following stronger-than-expected earnings.Whirlpool, however, plunged 14.5 per cent after reporting weak quarterly results. The appliance maker said it planned to raise prices by at least 10 per cent on some products while accelerating cost-cutting measures amid softer consumer confidence.McDonald’s edged up 0.6 per cent after revenue for the latest quarter slightly exceeded analysts’ expectations, helped by new product launches and value-focused offerings.In the bond market, Treasury yields declined alongside oil prices. The yield on the 10-year US Treasury fell to 4.33 per cent from 4.36 per cent late Wednesday and 4.45 per cent earlier this week.Lower bond yields generally help reduce borrowing costs for households and businesses and tend to support equity valuations.Economic data released on Thursday painted a mixed picture. One report showed jobless claims rose last week, though less sharply than economists expected, while another indicated that US worker productivity grew at only half the anticipated pace during the previous quarter.Global markets were mixed. European indices traded lower, while Asian markets ended mostly higher.Japan’s Nikkei 225 surged 5.6 per cent after reopening following a holiday break, catching up with gains seen across Asian markets earlier in the week.The benchmark index has climbed nearly 71 per cent over the past year, largely driven by enthusiasm around artificial intelligence and semiconductor stocks.“I think it’s a kind of bubble because buying activity concentrated on leading AI, artificial intelligence stock and semiconductor-related stocks. It’s a situation where only semiconductor stocks are being bought,” said Takashi Hiroki, chief strategist at MONEX.
